Welcome [] · Q4 Financial Performance : Key Highlights vs LY ` Crs Rallis Standalone Q 4 2016-17 Q 4 2017-18 Revenue from Operations 347 349 Net sales (adj for Excise) * 328 349

1

Welcome!

V Shankar30th April 2018

Copyright © Rallis India Limited. All rights reserved.

Performance Highlights: Q4 and 12 Months (Consolidated)

Q4 – Total income ` 371 Crs

Q4 – Total comprehensive income ` 21 Crs

FY18 – Total income ` 1808 Crs

FY18 - Total comprehensive income at ` 167 Crs.

Board recommends a Dividend of ` 2.50 per share

2

Copyright © Rallis India Limited. All rights reserved.3

Q4 Financial Performance : Key Highlights vs LY

` CrsRallis Standalone

Q 4

2016-17

Q 4

2017-18

Revenue from

Operations347 349

Net sales (adj for Excise) *

328 349

EBITDA 50.61 42.70

EBITDA % 14.6% 12.2%

Profit before tax 43.15 34.56

Total Comprehensive

Income 33.19 26.48

Q4

2016-17

Q4

2017-18

367 371

348 371

41.7 33.63

11.3% 9.1%

31.52 25.19

32.05 20.62

Rallis Consolidated

Numbers have been rounded off

6.3% over PY

6.6% over PY

*Numbers adjusted for Sales return provision, regrouping of Excise duty and Cash discount per IND AS


YTD Financial Performance : Key Highlights vs LY

` CrsRallis Standalone

YTD

2016-17

YTD

2017-18

Revenue from

operations1490 1516

Net sales(adj for Excise) *1386 1498

EBITDA 235.27 226.19

EBITDA % 15.8% 14.9%

Profit before tax &

Exceptional items 200.93 191.26

Total Comprehensive

Income** 265.56 141.33

YTD

2016-17

YTD

2017-18

1768 1808

1664 1791

263.61 264.47

14.9% 14.6%

221.56 227.03

296.56 166.69

Rallis Consolidated

Numbers have been rounded off

**Includes Gain from assignment of lease hold land of Rs 126.85 crs at Turbhe

8 % over PY

7.6% over PY

*Numbers adjusted for Sales return provision, regrouping of Excise duty and Cash discount per IND AS


Domestic Agchem Environment

Q4


Monsoon Behaviour

SPI-Jan-Mar 472 districts -Mild to extreme dryness

(Irrigation was a constraint in Paddy crop) 153 districts with severe to extreme dry

category(due to high temperatures crop health was affected with Pest free condition in Pulses)

SPI - Jun-Mar 368 districts -Mild to extreme dryness

(Paddy,F&V affected due to less rainfall) 140 districts with severe to extreme dry

category(Cotton and Pulses due to dry spells farmers was not keen on pest control measures)


Rabi Sowing Status

30

4

14

68

62

32

3

16

68

65

30

3

17

68

64

-4%

17%

5%

-1%

-5%

-1%

-10%

-5%

0%

5%

10%

15%

20%

0

10

20

30

40

50

60

70

Wheat Paddy Total Pulses Coarse Cereals Oil Seeds Total

Normal area sown Area sown in 2016-17 Area sown in 2017-18 Change over LY

Sowing is down by 1% as compared to last year, however key crop Paddy is up by 17%


Paddy Reservoirs/ Irrigation

Q4- Crop Conditions – Impact on Rallis performance

Fruits & Vegetables

Pulses

Cumin

AcreagesPest Pressure -

Medium

Crops Performance of Imperative Enablers

Soil Moisture Acreages Pest pressure-Low, missed Bollworm sprays

Water Stress AcreagesPest Pressure

- Medium

AcreagesPest Pressure -

MediumIrrigation

Key states

TN, KN, AP, TG, CG,BH,WB

MH,KAN,, UP, AP, TG,MP

Various states

GJ,RJ,UP 9%

6%

7%

15%

Others AcreagesPest Pressure -

MediumIrrigationPJ,HR,TN,KN,TG,Mh

With depleting water levels coupled with hot weather conditions, led to low pest pressure in key crops impacting performance.


Agriculture & Industry

2017-18: Year context


South West Monsoon 2017 ends with 5% less than normal

RegionsNormal

Rainfall(mm)Actual

Rainfall(mm)% Departure

North West India 615 552.9 -10%

Central India 975.5 918.8 -6%South Peninsula 716.1 717.6 0%East and North East India 1438.3 1386.4 -4%

Country as a whole 887.5 841.3 -5%

Seasonal Rainfall 1st June to 30th September

South West monsoon is -5% of LPA

Source: IMD


July August September

Normal(mm) Actual(mm) % Departure

289.2 294 2Normal(mm) Actual(mm) % Departure

261.3 228.1 -13

Normal(mm) Actual(mm) % Departure

173.4 152.1 -12

Source: IMD


Rainfall remains normal but ill-distributedWeek-wise

Overall

State-wise

Overall - 5% deficient rainfall, ~65%

area receives normal rainfall


Monsoon ends with 5% less than normal

Kharif sowings were down by 2% over LY

Crop health better than last year; Low Pest attack in Cotton, Paddy in many States

Kharif production is 135MT which is less than 3% over LY

13

So, how was S-W monsoon actually?


Regions

Normal

Rainfall

(mm)

Actual

Rainfall

(mm)

%

Departure

North West

India62.7 27.5 -56%

Central

India 79.6 72.3 9%

South

Peninsula273.3 243.6 -11%

East and

North East

India

171.4 200.9 17%

Country as a

whole127.2 112.7 -11%

Seasonal Rainfall 1st October

to 31th December

North East monsoon is normal with -11% of LPA with 13 States receiving Normal rainfall

Spatial Rainfall Analysis1.10.2017 to 31.12.2017

# Source: Ministry of Agriculture, PIB

How was NE Monsoon?


Sowings

KharifNormal

area sownArea sownin 2016-17

Area sownin 2017-18

Change Over LY(%)

Paddy 382 383 379 -1%Cotton 103 103 123 19%

Pulses 147 148 142 -4%

Coarse Cereals 190 191 187 -2%Oil seeds 190 189 173 -9%Groundmut 47 47 42 -11%Soyabean 115 115 106 -8%

Sugarcane 46 46 50 9%Jute 8 7 7 -6%

Total 1228 1229 1209 -2%

RabiNormal

area sownArea sownin 2016-17

Area sownin 2017-18

Change over LY

Wheat 302 318 304 -4%

Paddy 37 27 32 17%

Total Pulses 140 161 169 5%

Coarse Cereals 64 58 57 -1%

Oil Seeds 81 85 81 -5%

Total 624 648 643 -1%

Area in Mn Ha


Overall Domestic Business

Monsoon-Sufficient

Acreages

Farm Sentiments & Cash

SW below normal, with timely start and Temporal and spatial distribution of rain not uniform

NE timely and -11% departure from Normal

Acreages down by 2% over LY Kharif and 1% over Rabi

Crop prices

Long dry spells and intermittent rains during harvesting period effected the market cash flow

Pulses, Oilseeds and Vegetables were down while Cotton and Paddy are stable

Pest pressure Low in Kharif and Rabi in crops like paddy, pulses

Normal – 96% ± 4% of LPA

Acreages – Up

High

Higher

High

Expectation Actuals


Paddy

Stem Borer,BPH,SB,

Blast,GrainShine

YTD CP Performance over Last Year Improved

Fruits & Vegetables

Pulses

CropsPest Load

Sucking Pest,Bollworms

Borers,Rots,dieback,Leaf spots

Key states

LY

TN, KN, AP, TG, CG,BH,WB

MH,KAN,, UP, AP, TG,MP

Various states

Rallis improved market share in key segments with increase in Paddy and Cotton

7%

15%

Others MediumMediumPJ,HR,TN,KN,TG,Mh

Cotton Water StressGJ,MH,AP,TG,KN,TN

CY

Aphids,Jassids,White fly,PB

Stem Borer,BPH,SB,

Blast,Grainshine

Aphids,Jassids,White fly,PB

Sucking Pest,Bollworms

Borers,Rots,dieback,Leaf spots


Global Agchem Environment

Year 2017-18


The global crop protection market was estimated to increase by 0.2% to reach a total value of $53.69 b USD in 2017.

The key factors were Weak crop commodity prices. High distributor inventory in many markets. Strengthening of US dollar against most major currencies Favorable weather conditions following the El Niño weather event Return of normal monsoon benefitted water availability across many parts of Asia High adoption of new trait technologies, particularly Intacta soybeans in Brazil

All the major regions suffered a decline in nominal US dollar terms. In terms of real growth, 2017/2016(%),

NAFTA(+ 0.9%),

LATAM(-8.3%),

Europe(-4.2%)

Asia(+ 0.9%).

The sales performance of leading agrochemical companies of 2017 were positive except Bayer Crop Science( 9 months period).

There was little change in the global planted area of major crops in 2017, except for Decrease in Maize(-3.7%), Rice(-0.5%),Soybean(-0.9%)cotton (-3.1%), Soybean (-3.4%). There was an increase in cotton(+12.1%)

The decrease in Brazilian market can be attributed to reduced pest and disease pressure and the rise in adoption of Intact RRsoybean. Markets in Asia have performed well. NAFTA is estimated to have shown marginal growth overall

Global Ag chem Business 2017-18

The global agrochemical market showed an increase of 0.2% during 2017.Lower commodity prices and high inventory pressure led to lower increase in market growth.Source :Phillips Mcdougall


Current happenings in China

Key happenings Current update

New Round of MEP Inspection

Chinese Central Government MEP (Ministry of Environmental Protection) started new round of environmental inspection mainly in Shandong & Jiangsu provinces.

Due to this, many plants are expected to shut / run for partial production.

Currency appreciationdue to US-China TradeWar

Currency appreciation leads to increase in RM cost (Generally 1% appreciation leads of 1% increase in cost in normal scenario)

Demand Supply Gap / Availability

Many raw materials, intermediates & technicals are in short supply.

Increase in Cost Almost all technical and intermediate prices are still at higher levels because

of less production & it is unlikely that there will be any price decreasingtrend for next quarter, as per feedback received from key suppliers.


INTERNATIONAL BUSINESS PERFORMANCE YTD

International has performed in line with our expectations:

Brazil situation is improving, showing a positive impact however Chinese

competition continue to impact margins in Acephate

Herbicides sales continue with good season leading to demand in EU

Fungicides continued to grow due to good season in Vietnam

IBD as % of total sales ~32%.


Net Working Capital-2017-18

22

` Crs

Note: Strategic Inventory held considering anticipated shortages in Key RM required for Q1FY 19 sales

International Business sales order deferred to Q1

Statement of change in working capital

Particulars 2016-17 2017-18

Current Assets 590.06 912.83

Inventories 244.49 374.86

Sundry Debtors 225.84 365.33

Other current Assets 119.73 172.65

Current Liabilities 338.93 481.86

Trade Payable 227.93 368.65

Provisions 26.52 19.59

Other current Liabilities 84.48 93.61

Cash and Bank Balances 6.62 5.69

Net working capital 257.74 436.67

Current Ratio 1.76 1.91

*Other Current Assets + Advance Tax + Other Fin Assets

#Short term Borrowing + Other Current Liab+ Current tax Liab+ Other Fin Liab


Reasons impacting Margins

Product mix variance

Farmer opted for low value generics due seasonal aberrations

Competitive pressures due to unfavourable season

Gross Margins EBITDA Margins

Employee benefit expenses increased due to additional man power recruitments as per plan

Some one-time expenses

Provision for GST on inventory


Reasons for increase in Working Capital

Inventory Debtors

Strategic Inventory held considering anticipated shortages in Key RM required for H1FY 19 sales plan

Stocks produced in anticipation of good season held back due to high temperature and low pest pressure with farmer shifting to low value generics

Long dry spells along with intermittent rains during active crop growth and harvesting period affected the market cash cycles

Output Price of Oilseeds, Pulses, Chili, F&V were low .

Sugar Mills payment got delayed UP & MH.

Customer mix with differentiated credit periods


26

% Improvement in Yield

Kharif achievement – 45 k farmers

Kharif –0.5 M

Rabi –0.5 M

1 M Farmers

2017-18

22 RSK Mega events

% increase in income

11-20%1612835%

>20%1205927%

5-10%1147525%

< 5%609413%

up to 10%3103268%

11-40%1164325%

>40%30817%

High Yields Better quality Lower costs

Value Creation Increase farmer SoW

Higher revenues


Drishti rolled Pan India for 4 Crops – 4 pests x 4 diseases –Paddy, Cotton, Tomato & Chilly

Crop Health, Weather, Soil Moisture & Pest forecast used extensively by sales team for resource planning, liquidation campaigns, customized advisory & new opportunity identification

Agri farms geo-fenced for providing personalized advisory through Drishti

Digital Updates

Samadhan has a multilingual support with app being available in 11 languages

Farmers registered on Samadhan

Farmers are leveraging the ‘ask an expert’ query functionality & complaint management functionality

SAMPARK extensively being used for CA Training.

3 Quiz conducted


Rallis Customer Connect & New Launches


Customer Connect FY18– Total Customer connect – 9.48 Mns

Text & Voice Blast Focused Group Discussion

Crop Seminars Campaigns & Road Shows

One to One Contact Toll Free Helpline

Customer contact are in millions (mns)Not unique contacts

Total Customer9.48 Mns

Samadhan App


New Products 2017-18

• Fungicide in Paddy

• Controls Sheath blight with Yield and Quality enhancement

• Insecticide for Paddy,Cotton, Chilli & Brinjal

• Combination of Acephate +Buprofezin

• Specialized fungicide for Fruits and Vegetables segment

Launch in Guntur,Raipur,Chandigarh Launch in Guntur, Raipur Launch in Guntur,Pune,Bangalore

30


7%

2016-17

10%

2017-18

Innovation Turnover Index

Recent launches are well accepted but yet to achieve high volumes

Growth driven by Summit, Pulito, Cenator and Epic


Digital Led RSK SEEDSContract

Manufacturing

Crop protection + PGN + Geogreen

Metahelix Dahej

Growth Drivers


Metahelix

1.5x PBT for second consecutive year (PBT Rs 32.6 Cr vs Rs 20.9 Cr PY)

Sustained growth in Revenues & PBT; Better than AOP performance in Capital Employed & Free Cashflow in spite of difficult environment

Revenue: Rs 318 Cr vs Rs 278 Cr LY;

Capital Employed Rs.84 Cr; FCF Rs 40 Cr

Farmer contact crosses 4m farmers

AIP (Annual Improvement Plan) initiatives (20 cross functional projects lead by SLT); Project Udayinitiated for profit improvement; major progress on e-enablement (Grower Module, MRMS launched). EBIDTA margin improved by 130 bps

Big delta on Tata Business Excellence Score: 480 vs 439 LY


Safety & Sustainability


Stewardship 2017-18 – Safety Awareness campaign

Activity Number

Safety meetings – All IndiaNumber of farmer meetings: 597

No.of farmers participated : 38,289

Safety meetings with TATA Trusts in

Maharashtra state

Number of farmer meetings: 472

No. of farmers participated : 26,000

Awareness campaign on

Personal Protection Equipment (PPE) KITs 4000 PPE Kits

Van Campaign 152 days

Leaflets on Safe handling of Crop

Protection Products40,000

Posters on Safe handling of Crop Protection

Products10,000

Training to Medical personals 73 medical staff


PPE Awareness program – Farmers and farm labours

Amravati Akola

AmravatiYavatmal


PPE program with Government Officials to spread awareness

Sangli Nashik

Ratnagiri Jalgaon


Lote unit receiving National Safety Award

Sustainability Model

Jal Dhan Project-Impact

111688 beneficiaries

covered

Approx. 5.0 crores of

Bucket of water

Harvested nearly 1.06

Million cubic Meter

Harvested Four times more water than

what we utilise in our operations

Education Initiative

5

1620

2936

2013-14 2014-15 2015-16 2016-17 2017-18

No of schools

6902559

5085

8755 9800

80 9802468

39844972

2013-14 2014-15 2015-16 2016-17 2017-18

No. of students


Outlook for Kharif 2018


Agriculture year 2017-18

Budget highlights

Minimum support price (MSP) for kharif crops (that havenot been announced) to be at least 1.5x of production cost

Agri institutional credit up 10% at Rs 11 lakh crorecompared with the budgeted number of last year

Development and upgradation of 22,000 rural haats intogramin agricultural markets (GrAMs)

Rs 500 crore outlay announced for ‘Operation Greens’ toaddress price volatility of perishable commodities, such aspotato, tomato and onion.

CropsProduction in2016-17(MT)

Production in 2017-18(MT)

Growthover LY(%)

Rice 109.7 111.01 1%

Wheat 98.51 97.11 -1%Coarse Cereals 43.77 45.42 4%Pulses 23.13 23.95 4%Oil seeds 31.28 29.88 -4%Cotton* 32.58 MB 33.92 MB 4%

Sugarcane 306.07 353.23 15%

All-time high food grain production of277.49 million tonnes, 1% up from LY

Despite a bumper output, agriculture is expected to grow just 4.2 on account of as prices remained depressed especially in pulses and oilseeds

Source: PIB

GVA in agriculture and allied activities at 2011-12 prices(%YoY)

Agriculture is on Positive trend supported by Govt.initiatives 43

5.6

-0.2

0.7

4.9

2.1

2013-14 2014-15 2015-16 2016-17 2017-18*

*provisional as per first advanced estimate of MOSPI


Monsoon


Documents

Welcome [] · Q4 Financial Performance : Key Highlights vs LY ` Crs Rallis Standalone Q 4 2016-17 Q 4 2017-18 Revenue from Operations 347 349 Net sales (adj for Excise) * 328 349